PNB Housing Finance-Carlyle Rs 4,000 cr deal comes under Sebi scanner

FPJ Web DeskUpdated: Friday, June 11, 2021, 11:28 PM IST
article-image
SEBI | PTI

Securities and Exchange Board of India (SEBI) has ordered a scrutiny into the Carlyle Group’s Rs 4,000 crore fund infusion proposal in Punjab National Bank (PNB) Housing Finance, according to news reports.

“The Ministry of Finance is also looking into this deal,” according to Moneycontrol, citing a person close to the development.

The fund proposal came under spotlight when Stakeholders Empowerment Services (SES) flagged concerns. SES is a leading “proxy advisory firm” led by J N Gupta, a former executive director of Sebi, to to protect minority shareholder interests, The proposal by investors led by US private equity giant The Carlyle Group is against the interest of public shareholders of the mortgage lender, parent company Punjab National Bank (PNB), SES said.

SES has raised several questions about PNB’s preferential allotment to Carlyle, which gave the private equity firm control over PNB Housing Finance Company (PNBHFL). It has questioned the legitimacy of the transaction and alleging corporate governance lapses, news reports said earlier.

The watchdog has recommended PNB Housing public shareholders to cast ‘against’ votes against the resolution on preferential allotment.

Sources told CNBC-TV18, PNB did not get the approval of Reserve Bank of India (RBI). However, the deal for capital raise has been arrived with due diligence, said PNB, the report said.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

5th Test: Cheteshwar Pujara scores gritty 50 as India reach 125-3 against England on Day 3 to lead...

5th Test: Cheteshwar Pujara scores gritty 50 as India reach 125-3 against England on Day 3 to lead...

Warm-up match: All-round Harshal Patel stars in India's 10-run victory over Northamptonshire

Warm-up match: All-round Harshal Patel stars in India's 10-run victory over Northamptonshire

Mumbai: Wife gets anticipatory bail in cash-for-job scam

Mumbai: Wife gets anticipatory bail in cash-for-job scam

Speaker’s Election: Ruling & Opposition members take dig against each other

Speaker’s Election: Ruling & Opposition members take dig against each other

ED summons former Mumbai CP Sanjay Pandey in connection with NSE co-location scam

ED summons former Mumbai CP Sanjay Pandey in connection with NSE co-location scam